To buttress its charge of destabilising the financial system, the agency has referred to a judgement by the Orissa High Court, which, in 2020, had described money laundering as an act of 'financial terrorism'.īin Lou, a former director of Vivo, and another Chinese national named Zhixin Wei allegedly set up the 22 companies. In the data shared by the ED with the high court, the chartered accountant mentioned above has been shown as assisting in incorporation or as a witness in processes connected to almost all the 22 companies. “These findings give reasons to believe the close nexus between M/s GPICPL, a company floated on the basis of forged documents, and M/s Vivo,” according to the ED. The agency said a New Delhi-based chartered accountant who facilitated the incorporation of GPICPL had done the same for Vivo in August 2014.įurther, the email used by GPICPL was in Ministry of Corporate Affairs filings, showing a connection between Vivo and GPICPL, according to the affidavit, which ET has seen. The ED has drawn a parallel between the incorporation of the 22 companies and Grand Prospect International Communication Pvt Ltd ( GPICPL), a Jammu and Kashmir distributor of Vivo, which allegedly falsely projected itself as a subsidiary of Vivo India. Vivo has said previously that it abides by all local laws.

“However, it is seen that the majority of the funds have been transferred abroad to China, which is suspicious and is being investigated,” the affidavit stated.

The agency alleged that the 22 companies are owned by foreign nationals or overseas entities based in Hong Kong. In an affidavit filed late last week, the federal agency informed the Delhi High Court that 22 companies related to the India unit of the Chinese company are being investigated for 'suspicious' transfers to China. The Enforcement Directorate has alleged that the bank accounts of mobile phone company Vivo India are 'clearly involved in money laundering' and this 'has been carried out as an attempt to destabilise the financial system of the country and also to threaten the integrity and sovereignty of the nation'.

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